It PAYS to shop around.
Many Canadian homeowners pay too much for their homes because they are not getting the best mortgage financing available in the market.
The mortgage process can be intimidating for homeowners, and some financial institutions don't make the process any easier.
But I’m here to help!
I’m a VERICO Mortgage Advisor and I’m an independent, unbiased, expert, here to help you move into a home you love.
I have access to mortgage products from over forty lenders at my fingertips and I work with you to determine the best product that will fit your immediate financial needs and future goals.
VERICO mortgage specialists are Canada’s Trusted Experts who will be with you through the life of your mortgage.
I save you money by sourcing the best products at the best rates – not only on your first mortgage but through every subsequent renewal. So whether you're buying a home, renewing your mortgage, refinancing, renovating, investing, or consolidating your debts — I’m the VERICO Mortgage Advisor who can help you get the right financing, from the right lender, at the right rate.
Saving You Money
Good Day;A lot of my clients have taken the attitude that their mortgage payment is the same as a utility payment. That is to say you know what the scheduled payments amount is and the day it comes due. You set up your budget and just follow along on that schedule. This just what the banks want you to do. That way they get the maximum amount of interest out of you. This does not change even with a lower rate, they want the maximum amount of interest for what ever the rate is . I can better explain this with the following example:Principal amount of the mortgage $200,000.00Interest Rate 3.75%Amortization of the Mortgage 25 YearsTerm of the mortgage 5 yearsMonthly payment $1025.11Total Payments (25 years) $307,534.04Total interest paid (for 25 years) $107,534.04(Because the rate is not likely to stay the same for 25 years there will be some allowance to take, however for simplicity sake we will just use the same rate for the full 25 years)As you can see the bank will get $107,534.04 in interest from you. And you will take 25 years to payout the mortgage.Now lets look at what happens if you handle your mortgage as an investment. You will only have to do ONE simple step to save Thousands of dollars in interest.Here is the plan:Principal amount of the mortgage $200,000.00Interest Rate 3.75%Amortization of the Mortgage 25 YearsTerm of the mortgage 5 yearsMonthly payment $1025.11 Change this to Accelerated Bi-weekly PaymentsTotal Payments (25 years) $307,534.04Total interest paid (for 25 years) $107,534.04New Plan results:Principal amount of the mortgage $200,000.00Interest Rate 3.75%Amortization of the Mortgage 25 Years now changes to 22 yearsTerm of the mortgage 5 YearsBi-Weekly Payment $ 512.55Total Payments (22 years) $292,837.55Total interest paid (or 22 years) $ 92,837.55That is a saving of $14,696.49I know you do not get paid every two weeks, .you get paid once a month or most likely on the 1st. and the 15th. so you can’t make a payment every two weeks.YES YOU CAN AND YOU BETTER OR IT WILL COST YOUHere is the simplest way to do it.Open a separate bank account strictly for your mortgage and taxes, it can be in the same bank you use for everything else, Deposit the equilivent of one months mortgage payment plus 1 12th. of your annual property taxes ( you can deduct the Home Owners Grant for them) then every month you deposit the same amount into that account. You can make two deposits of 1/2 the amount if that works for you, just start the account with a full a months payment.You then tell the bank that holds your mortgage to withdraw 1/2 of the monthly payment every 2nd. Friday (or any day you choose) and let it take care of itself. You will end up with money in that account which you will use for your taxes. Remember in BC your taxes are always due the first week of July. You pay a full years taxes at this time. Taxes run fro January 1 to December 31. So in July you are paying 6 months in arrears and 6 months in advance. If you start your mortgage bank account in January you will need to top up the tax account portion so you have enough to pay the full amount in July.If you would like to play around with this scenario you can go to my website WWW.CLAYTONCARBY.CA and look for the calculators on the left side of the front page.Also remember if you have any questions do not hesitate to call me. 604-740-6849Thank You Clayton B. Carby AMPTHE MORTGAGE ADVANTAGE
Bank of Canada rate announcement
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.
Global growth in the first half of 2016 was slower than the Bank had projected in its JulyMonetary Policy Report(MPR), although the Bank continues to expect it to strengthen gradually in the second half of this year.
The US economy was weaker than expected in the second quarter, notably reflecting a contraction in business and residential investment. While a healthy labour market and solid consumption should remain supportive of growth in the rest of the year, the outlook for business investment has become less certain.
While Canadas economy shrank in the second quarter, the Bank still projects a substantial rebound in the second half of this year.
Second-quarter GDP was pulled down by the Alberta wildfires in May and by a drop in exports that was larger and more broad-based than expected. Exports disappointed even after accounting for weaker business and residential investment in the United States, adjustments in the resource sector, and cutbacks in auto production.
The economy is expected to rebound in the third quarter as oil production recovers, rebuilding commences in Alberta, and consumer spending gets an additional lift from Canada Child Benefit payments. As federal infrastructure spending starts to have more impact, growth in the fourth quarter is projected to remain above potential.
Inflation is roughly in line with the Banks expectations. Total CPI inflation is below the 2 per cent target, mainly because of the temporary effects of lower consumer energy prices. Measures of core inflation remain around 2 per cent, reflecting offsetting effects of excess capacity and past exchange rate depreciation.
On balance, risks to the profile for inflation have tilted somewhat to the downside since July. At the same time, while there are preliminary signs of a possible moderation in the Vancouver housing market, financial vulnerabilities associated with household imbalances remain elevated and continue to rise.
CREA releases latest sales figures: home sales decline while prices rise
According to statistics released this week by The Canadian Real Estate Association (CREA), national home sales declined for a third consecutive month in July 2016.
National home sales fell 1.3% from June to July.
Actual (not seasonally adjusted) activity came in 2.9% below July 2015.
The number of newly listed homes rose 1.2% from June to July.
The MLSHome Price Index (HPI) rose 14.3% year-over-year in July.
The national average sale price climbed 9.9% in July from one year ago; net of the Greater Toronto Area (GTA) and Greater Vancouver, it advanced 7% year-over-year.
While national home sales fell 1.3% month-over-month in July, the average price jumped 14.3% year-over-year last month. Newly listed homes, meanwhile, increased 1.2% month-over-month.
Sales activity was down from the previous month in slightly more than half of all markets in July, led by Greater Vancouver and the Fraser Valley. Transactions in these two markets peaked in February of this year, and have since then dropped by 21.5 and 28.8 percent respectively. Accordingly, much of the national sales decline in recent months reflects slowing activity in B.C.s Lower Mainland.
National sales and price trends continue to be heavily influenced by a handful of places in Ontario and British Columbia and mask significant variations in local housing market trends and conditions across Canada, said CREA President Cliff Iverson.
Home sales continued to trend lower while price gains further accelerated in the Lower Mainland of British Columbia, said Gregory Klump, CREAs Chief Economist. This suggests that sales are being reined in by a lack of inventory and a further deterioration in affordability. The new 15 per cent property transfer tax on Metro Vancouver home purchases by foreign buyers took effect on August 2nd, so it will take some time before the effect of the new tax on sales and prices can be observed. That said, the new tax will do little in the short term to increase the supply of homes.
With sales down and new listings up, the national sales-to-new listings ratio eased to 61.6 percent in July 2016 its second monthly decline following its peak of 65.3 percent in May. A sales-to-new listings ratio between 40 and 60 percent is generally consistent with balanced housing market conditions, with readings below and above this range indicating buyers and sellers markets respectively.
The national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which remain two of Canadas tightest, most active and expensive housing markets. The actual (not seasonally adjusted) national average price for homes sold in July 2016 was $480,743, up 9.9 percent y-o-y.
If these two housing markets are excluded from calculations, the average price is a more modest $365,033 and the gain is trimmed to 7.0 percent y-o-y.